Trade issues and labor, both major concerns for California’s citrus industry, were among numerous topics discussed recently by Jacob Villagomez, director of governmental affairs for California Citrus Mutual.
EXPORT MARKETS HARMED BY TARIFFS
Villagomez said Canada is the No. 1 export market for California citrus. He described how previous tariff actions resulted in canceled orders and shipments being frozen almost overnight. Losing access to an export market can have consequences that last well beyond the immediate dispute, he said.
“When you lose market access, it takes a number of years to regain that access,” Villagomez explained.
He said shipments to China have declined substantially since the Trump administration came into office. The industry remains hopeful that additional market access can eventually be restored, but diplomatic issues must first be addressed, he said.
COMPETITION WITH IMPORTS
California growers are competing against imported citrus. Villagomez specifically pointed to large volumes of Argentine lemons entering the U.S. market and putting downward pressure on prices. The issue is especially serious when Argentine lemons arrive at the same time California growers are marketing their crop.
California Citrus Mutual is seeking federal relief through a tariff-rate quota (TRQ) system. Such a mechanism would establish a volume threshold for imports, with a higher tariff applying to product entering above the quota.
California growers are not seeking to stop imports, Villagomez said. Instead, they want a more balanced market that recognizes the substantially higher costs California growers face for labor, water, fertilizer and regulatory compliance.
MORE RELIABLE LABOR NEEDED
Labor is particularly important because California citrus is overwhelmingly destined for the fresh market and still must be harvested by hand. Villagomez said the industry relies heavily on migrant and immigrant workers and continues to push for immigration and H-2A reforms that can provide a more reliable legal workforce.
Villagomez also discussed opportunities for California citrus. Hear more from Villagomez in the AgNet News Hour podcast.
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